Consequences if Raymond requested (that is Consequences if Raymond had requested a £400 payment from Samantha as full and final settlement) is the partly answer of the case study regarding a business law practice taken from a course like Business Law and Ethics.
Question:
Breach of Contractual Relationships and Remedies
Raymond works on a part-time basis for a firm of accountants in its taxation department, but he also runs a small consultancy business, of which he is the sole proprietor, specialising in personal taxation advice. He entered into a contract with Samantha, a struggling artist, under which he agreed to prepare some draft business accounts for her,covering the last three years, for the sum of £800. Raymond completed the work, but Samantha told him she could only afford to pay £200 for the work. After a bitter argument Raymond reluctantly accepted a cheque for £200 from Samantha, which was stated to be in full and final settlement of the debt.
Shortly afterwards Samantha’s paintings began to realise very high prices and Raymond has just read in a newspaper that her latest work has been sold for £20,000. He now wishes to claim the balance of £600 from Samantha and approaches you for advice.
Required:
Requirement 1 Answer: Advise Raymond on Possible Remedies
Requirement 2 Answer: Consequences if Samantha had paid Raymond
3. What would be the legal position if Raymond had requested a £400 payment from Samantha as full and final settlement?
Answer:
Consequences if Raymond had requested a £400 payment from Samantha as full and final settlement
A contract is formed when two parties comes under one consideration enforced by law. For a contract, it has the following components:
Offer- The proposal that one party gives to another party in exchange of performance or value.
Acceptance- When another party accepts the offer coming from the first party.
Consideration- It is the exchange of value with services, goods or other to someone.
If Raymond had requested for £400 as final settlement, then it would have been considered as counter offer which depends on the Samantha. A counter offer is that when one party wants negotiation. If one party wants to change in original offer, he proposes another offer over that. It diminishes the previous contract and builds a new contract. Therefore, the terms and conditions will also be changed (Badaracco, J. L. and Webb, A. P., 2015). Counter offer also requires to be accepted before any revocation. In the case of counter offer, the formation of contract is upon the offeree. This principle is based on a case known as NORMALE VS MILLER. There was a part of real estate that Plaintiffs Normile and Segal wanted to buy from Miller. Miller was their defender. At first, Normile proposed the offer but Plantiff showed disagreement to the offer and proposed counter offer. In our case, Raymond asks for £400 which is a counter offer and that can become a contract only if Samantha accepts the offer.
References
Badaracco, J. L. and Webb, A. P. (2015) ‘Business Ethics: A view from the Trenches’, California Management Review, 37(2), pp. 8–28.
Graw, S., Parker, D., Whitford, K., Sangkuhl, E. and Do, C., 2017. Understanding Business Law. 2nd ed. London: University Press.
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